RESOLUTION APPROVING SETTLEMENT OF CITY CLAIM AGAINST A
& L DEVELOPMENT, INC. IN THE AMOUNT OF $22,000.

BY COUNCILOR STOVER:

RESOLVED, that the proper city officials are authorized to accept from
A & L Development, Inc., $22,000 in full and final settlement of its claim
arising out of a disputed bill for gas services provided by the city of Duluth
and resulting in an action filed in St. Louis County District Court and entitled
City of Duluth v. A & L Development, Inc., St. Louis County File
No. 69-02-04-602419. Funds to be deposited in Fund 520, Agency 500, Revenue
Source 4821.

Approved:Approved for presentation to council:

Department DirectorAdministrative Assistant

Approved as to form:Approved:

AttorneyAuditor

ATTY MAL:nmj 08/01/05

STATEMENT OF PURPOSE: In September of 1998, A & L Development, Inc. applied for
gas services to a building under construction at 1420 London Road. A gas meter
was installed and gas services were initiated. Due to a data entry error in the
city’s billing system, services provided from October 29, 1998 through February
28, 2001 were first billed in March of 2001. A & L Development, Inc. disputed
the bill. The city commenced litigation in December 2002.

The parties engaged in discovery. The civil division of the city attorney’s
office analyzed the potential outcome should this matter proceed to trial.
Settlement negotiations were conducted, and an agreement has been reached in the
amount of $22,000. $6,000 of this amount was previously paid by A & L
Development, Inc. The remaining amount will be paid in installments. The city
attorney’s office recommends this settlement.